Real Estate Program - psers

Approval and Closing Process
After review of an investment package, the Consultant shall inform the MDPMRE of its
conclusions and recommendations regarding the investment opportunity.
Upon concurrence by the MDPMRE and Consultant of the validity of an investment
opportunity, the investment will be scheduled as an agenda item at the next possible
Committee meeting. The MDPMRE may inform the Submitter of preliminary staff level
approval of a transaction, but shall indicate to the Submitter that formal approval requires
Committee and Board concurrence.
Immediately following Committee approval the MDPMRE shall schedule the investment as an
agenda item at the next possible Board meeting. The MDPMRE may inform the Submitter of
Committee approval, but shall inform the Submitter that formal approval requires Board
action.
Immediately following Board approval, the MDPMRE and Consultant will prepare a formal
notice of approval to be sent to the Submitter/Seller, including specification of all conditions of
closing. Within ten (10) working days of Submitter’s/Seller’s receipt of said notification of
approval, the Submitter/Seller shall provide in writing to the MDPMRE and Consultant
evidence that the Seller of the subject transaction has formally agreed to all PSERS’
conditions of closing and shall specify a closing date acceptable to PSERS.
Within 30 days of Advisor receipt of formal notice of approval, Submitter/Seller will prepare or
cause to be prepared and delivered to the MDPMRE and Consultant the following:
1. Complete market analysis demonstrating the subject property's competitiveness within
its market area.
2. A complete environmental hazard analysis including a preliminary risk management
plan.
3. Any other information that PSERS may require as a condition to closing. (PSERS may
require, on a case-by-case basis, an independent appraisal.)
At the next Committee and Board meetings following a staff level investment approval, the
MDPMRE will submit an executive summary of the transaction. Documents relating to any
such investment will be executed in accordance with PSERS' standard policy, i.e., by any 2 of
the individuals holding the following positions: Executive Director, Chief Investment Officer or
Assistant Executive Director.
The MDPMRE will request that the Deputy Chief Counsel - Investments request that the
Pennsylvania Office of General Counsel designate outside legal counsel experienced in real
estate to assist in the closing. This process will be under the direct supervision of PSERS’
Chief Counsel who will be required to sign off as to his or her satisfaction of all legal issues
related to the property, the investment structure and the documentation prior to the closing
date in order for a closing to occur.
Approved March 13, 2009 V-12